Armstrong Company sold merchandise with a cost of $600 to a customer for $725 on account. The sales revenue and the offsetting accounts receivable were properly recorded. However, Armstrong failed to record the corresponding cost of goods sold and the offsetting inventory entries. What effect will the failure to record these entries have on Armstrong's accounting equation? The accounting equation will not be affected. Total assets will be overstated and total equity will be understated. Total assets and total equity will be overstated. Total assets and total equity will be understated